inheritance tax

American  

noun

1. a tax levied on the right of an heir to receive a decedent's property, the rate being a percentage of the value of the property.

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inheritance tax British  

noun

1. (in Britain) a tax introduced in 1986 to replace capital transfer tax, consisting of a percentage levied on that part of an inheritance exceeding a specified allowance, and scaled charges on gifts made within seven years of death

2. (in the US) a state tax imposed on an inheritance according to its size and the relationship of the beneficiary to the deceased

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Etymology

Origin of inheritance tax

First recorded in 1835–45

Example Sentences

See Examples For:

inheritance tax

The surviving co-habiting partner would still have to pay inheritance tax of 40% for anything above £325,000 - married partners are exempt from this.

From BBC ● Jul. 4, 2026

If this is a U.S. transaction, however, there is no federal inheritance tax.

From MarketWatch ● Jun. 24, 2026

The second thing to note is that six U.S. states — Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania — levy a state inheritance tax.

From MarketWatch ● Jun. 17, 2026

The bank said the funds will be exempt from inheritance tax and income tax.

From BBC ● May 19, 2026

Now, of course, I know perfectly well that the rich man dodges most of his income tax and most of his inheritance tax.

From The Book of Life by Sinclair, Upton

Related Words

• death tax
• estate tax